The European Central Bank has raised its forecasts for growth in the Eurozone. And it is a significant increase: from +2,25% to +2,4% for 2017, from 1,8% to +2,3% for the 2018 and from +1,7% to +1,9% for the 2019. The number one announced it ECB, Mario Draghiat the press conference following the last Governing Council meeting of the year.
According to Draghi, the euro area is going through a phase of “strong economic expansion” and growth prospects have shown a “significant improvement. In general, the growth news is very positive".
Today's discussion at the Governing Council of the ECB "reflects the growing confidence in the convergence of theinflation towards a self-sustaining path” towards the institution's goal, at a level below but close to 2%. The ECB confirmed its 2017 inflation forecast at 1,5%, while it revised its 1,4 inflation forecast upwards to 2018%. The institution's technicians then confirmed the cost of living estimate at 1,5%. of 2019 while they indicated a forecast for 1,7% in 2020.
As for monetary policy, the ECB confirmed i interest rates at an all-time low, in addition to the extraordinary measures already in force. “The Governing Council confirms that from January 2018 it intends to continue to carry out net purchases under the asset purchase programme at a monthly rate of 30 billion euros - reads the Eurotower press release - until the end of September 2018 or even further if necessary, and in any case until it encounters a lasting adjustment in the evolution of prices, consistent with its objective of inflation".
Furthermore, “the Governing Council stands ready to increase the program in terms of size and/or duration” if the outlook becomes less favorable or if financial conditions prove inconsistent with further progress towards a durable adjustment in the inflation profile.
On the side of the cost of money, the rate on the main refinancing operations was confirmed at zero, the rate on marginal operations at 0,25% and the rate on deposits that commercial banks park at the same institution at -0,40%.
